‘High interest rate killing shipping’

The Federal Government has been urged to reduce interest rates to enable ship owners upgrade their facilities and compete with foreigners.

In an interview with The Nation in Lagos, some stakeholders urged the government to build a vibrant investment climate for the maritime sector.

Former Chairman, House Committee on Legislative Compliance, Mr Moruf Akinderu-Fatai, said there should be policies to create linkages between the maritime industry and other sectors, such as banking and manufacturing.

He suggested measures like a dedicated institutional financing mechanism for the shipping and maritime sector, a comprehensive maritime regulatory policy, to delineate the roles and responsibilities of the government and private sector in the development of the maritime sector and building.

The purchase of modern vessels, Akinderu-Fatai, a shipper, said, would also provide jobs for millions of Nigerians and the restive youths across the country.

He said there was a need for a sustained partnership between the private and public sectors for effective funding.

The country, he said, had not enjoyed the commercial benefits of transporting large quantities of cargoes because the local ship owners lack the necessary capital.

He suggested that the Federal Government should integrate maritime education and training into the university system so that Nigerians who are interested in seafarers’training could get the necessary education needed to promote the sector.

While lamenting the lack of foreign exposure for better performance, he said many operators were bugged down with only practical experience, with little or no academic performance.

“There is need for more government intervention aside from CVFF to actively encourage the banking sector to support local ship owners to acquire modern fleet, which can sail anywhere in the world,” he said.

Vice President, Association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, said 60 per cent of the inward and outward bound seaborne trade in the West and Central Africa sub-region passes through the nation waterways and called on the Central Bank of Nigeria (CBN) Governor and the Minister of Transport, Rotimi Amaechi to assist in developing the maritime industry.

He said the country should expand its merchant fleet based on the high volume of bulk liquid, gas and dry cargoes that pass through its waterways.

“The fleet to carry the enormous quantity of cargo is estimated at 200 size tankers including combo general cargo vessels and liquefied natural gas vessels,” he said